What happened
Shares of Rivian Automotive (RIVN -1.81%), an electric vehicle (EV) maker, slid again today as investors grew increasingly concerned about the company's rising vehicle prices.
Today's 10.3% plunge comes after the EV stock fell 29% last week.
So what
For some context, Rivian told customers last week that the prices of its vehicles were going to increase as the cost of materials has gone up. The company initially said the price increases would not only be applied to new customers but also ones who had already preordered vehicles.
Image source: Getty Images.
News that the company was going to raise prices -- by as much as 20% for some model configurations -- sent Rivian's share price reeling. The company eventually walked back the price increases for customers who had already preordered vehicles, but the damage to its share price was already done.
Investors continued to put pressure on Rivian's stock today, likely as investors have grown concerned that the conflict in Ukraine could eventually negatively affect worldwide vehicle production and add to already rising automotive costs.
Automotive supply chains have been unstable since the COVID-19 pandemic began and with some automakers now cutting production in Russia, rising vehicle costs could potentially get worse.
While Rivian doesn't have any factories in Russia, any production slowdown in the broader automotive market, or additional supply chain constraints for things like semiconductor chips, could impact the EV company.
Now what
With so much uncertainty in the automotive market right now because of rising inflation, higher material costs, and now a conflict in Europe, it's not a surprise to see Rivian's stock sliding today.
Investors will get some more insight into how Rivian is doing right now and how it plans to navigate these challenges when the company reports its fourth-quarter and full-year 2021 results on March 10.
